3D manipulator is in wrong position
This is happening for one of several reasons, most likely because you moved the mesh while in edit mode changing the origin point (the little orange dot where the widget is). 

Looking at the image, your pivot point is most likely already on the default Bounding Box Center and what you want is to have the widget on the object. So to fix, select the object in Object mode and set the object origin back to the object with CtrlAltShiftC and choose Origin to Geometry.